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Wall Street dips as JPMorgan leads bank stocks lower

Reuters 

By Sruthi Shankar

(Reuters) - Banks led a drop in U.S. stocks on Friday, as results from big lenders including JPMorgan failed to enthuse investors keeping a wary eye on Russia's plan to consider banning some U.S. imports.

Shares of the biggest U.S. by assets dropped about 3 percent, overturning an initial gain in premarket trading when the reported a record quarterly profit that fell slightly short of expectations.

sank 3.3 percent after the said it may have to pay a penalty of $1 billion to resolve investigations, while dropped 2.4 percent despite reporting upbeat profit.

The banks index fell around 2.6 percent and the broader financial index lost 1.4 percent, the most among the 11 sectors.

Analysts cast the losses as driven in part by a bullish 10 days for the lenders, whose shares have generally been shakier in 2018 after doubling in value in a little over 18 months.

"We had such a huge run up in 2017 and early 2018 that the market pretty much discounted everything was going to come down the pipe," said Crit Thomas, at

"Yeah the earnings are good, but just not good enough."

By 13:02 p.m. ET, the Dow Jones Industrial Average was down 0.3 percent at 24,410.7. The 500 fell 0.09 percent to 2,661.58 and the dipped 0.17 percent to 7,127.82.

The results blow the starting whistle on U.S. earnings season, with data predicting profits at 500 companies increased by 18.4 percent from a year ago, their biggest rise in seven years.

While the U.S. economy is performing well, geopolitical issues are weighing this year on stock markets after almost a decade of uninterrupted gains.

Senior lawmakers said on Friday that Russia's lower house of parliament would consider draft legislation giving the Kremlin powers to ban or restrict a list of U.S. imports, reacting to new U.S. sanctions on Russian tycoons and officials.

"I have been up to this point, pretty adamant that a trade war is going to be much less of a war and more of a skirmish," said Thomas. "I'm starting to come around to maybe this almost inevitable."

fell 2.14 percent after a Russian said the company could be a casualty, with ongoing issues with engines for its planes also weighing.

The top gainer among sectors was the energy sector, up 1 percent as rose.

rose 2.54 percent after founder said the would be profitable in the third and fourth quarters of this year and would not have to raise any money from investors.

(Reporting by in Bengaluru; Editing by and Patrick Graham)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 23:05 IST
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